Greetings to the Hivers of the Philippines.
Today, let's steer away a little bit from our usual curation posts. For the benefit of our newbies and for some of us who wants to know more about the blockchain, let us talk about HivePower and powering up your tokens.
Before we dive into it, let us first learn more about the different terminologies that we use in the blockchain.
The Hiveblocks Tokens
Hive tokens
These are the digital tokens created due to the action of the blockchain.
Hive tokens are the following: Hive, HivePower and Hive-Blockchain-Dollar (ticker symbol HIVE, HP and HBD, respectively).
Since Hive is a hardfork of steem and most of the words that will be mentioned in this article can directly or indirectly echo what is contained on the steem whitepaper.
Hive is the native token of the Hive blockchain. It is liquid, can easily be transferred and no transaction cost.
HivePower
These are staked tokens of Hive. It means when the owner of the wallet that owns the Hive chooses to stake or lock the tokens, it will turn into HivePower with the ratio of 1:1. One hive staked will create one hivepower.
When you do this, HivePower is locked. Which means you cannot transfer it. It stays in your wallet on the duration of staking. To liquify HP, a wallet action is needed. It will take 13 weeks before it can reconvert all HP back to Hive.
Hive-Blockchain-Dollar (HBD)
HBD are designed to be pegged closely to 1 USD, so that users who receive them can know approximately how much they are worth in “real dollar” terms. HBD tokens also offer a relatively stable currency for users to hold if they are looking to preserve their account value relative to USD. Although pegged to the USD, I learned through experience that certain levels of volatility has been experience by HBD. This token is also a liquid token.
Both Hive and HBD can be traded on public cryptoexchanges.
So, how important is HivePower to the wallet owner?
The importance of HivePower can be summarized using the following blockchain concepts: inflation, delegation, resource credits and voting for witnesses and proposals.
Inflation
HIVE POWER increases at an APR of approximately 2.96%. It means just by keeping your HivePower it will proportionately earn HP relative to the amount of HP a wallet is holding. The bigger your HP, the bigger you will receive of HP in the inflation mechanism.
Delegation
This is the process of lending HP to an account in order for that account to have enough Resource Credits to make blockchain transactions.
Blockchain transaction are all action that results to the following: transfer of tokens, a upvoting/downvoting a post, posting content and commenting to a post, reblog or reshare, voting for witnesses and Hive Proposals.
Resource Credits can be consider as the “health or mana” of an account. It is depleted through the action on the blockchain. But replenishes within 24-48 hours depending on the amount of HP.
Governance and Work Proposals
This is the part where HP holding matters most. It's like your voting power in a company, where you are a stockholder. The bigger your HP the greater your influence on the outcome of the vote.
Witnesses are server operator/maintainers who run the blockchain itself. They are the custodian of the entire blockchain data.
A work proposal or simply called Proposals, are projects posted on the blockchain itself and being rewarded by tokens (HBD) automatically upon reaching a minimum voting threshold.
For these benefits, the HivePh Community will soon launch a program campaign to powerup excess hive tokens. It is already agreed upon during the 2nd Hive Philippines Community Meeting. Check the link @pinoy.viajero/2ndhivephilippinescommunitymeeting-my0ctrvlpd
This will be called as PinoyHivers PowerUp Day (PH-PUD) and will happen on the third Hive PH Community Online Meetup May 24th.
Thanks and Mabuhay Filipino Hivers!
Thank you for reading, let us know if this is helpful. Leave a comment if you have questions and if there are any other topics you'd like us to discuss.
About the Author:
@guruvaj is a senior high school public school teacher in Mabini Batangas, Philippines. Started his journey into cryptocurrency November 2017. His various interests are information technology, biological sciences, opensource concepts/technology, paranormal science an mysticism.
References:
https://steem.com/steem-bluepaper.pdf
https://smt.steem.com/smt-whitepaper.pdf
https://steem.com/SteemWhitePaper.pdf
https://github.com/steemit/steem
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